PET (polyethylene terephthalate) is a polymer that is formed by combining two monomers - modified ethylene glycol and purified terephthalic acid. Global consumption of PET in 2006
reached a level of just above 13 million tons, with an average global growth rate below
8%. The regional distribution of PET consumption is still strongly biased towards North America
and Europe, with these two regions accounting for 60% market share. Asia is growing at a faster
pace, grabbing a market share of more than 25%. It is quite possible that Asian region will surpass
the dominant regions of North America and Europe within the next 3-5 years, if not earlier.
PET is a popular packaging for food and non-food products. Manufacturers use PET plastic to package
products because of its strength, thermo-stability and transparency. Customers choose PET because
it is inexpensive, lightweight, resealable, shatter-resistant and recyclable. Carbonated beverage
sector is leading PET applications, accounting for more than 35% of PET consumption in 2006.
Water is the second major application with more than 25% of PET market share globally. Other
drinks have a third position with almost 18% share. These three market sectors account for almost
80% of the total consumption of PET in 2006. Italy�s M&G is the largest producer of PET globally,
with about 10% share of the World�s capacity. Eastman from USA is a close second, with almost 9% share
of global capacity. Both these suppliers are now increasingly focusing on improving profitability
instead of acquiring bigger market share. Asia has many but smaller manufacturers of PET.
PET business cycle, after showing an upward trend until 2002, started sliding down. PET showed
a very healthy growth of about 15% over the decade ending 2000. From 2001, the growth receded
quite significantly, dipping to below 10% from 2002. PET growth has slowed down since 2004, and at
present is moving downwards. The downward cycle may cease after 2009-2010.
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